Shiba Inu is causing significant losses for its investors. Recent data reveals that the hype surrounding SHIB, the once darling of the meme coin industry, may have led many investors astray.
At the time of writing, a staggering 80% of all Shiba Inu token address holders are experiencing losses on their holdings, a fact that is causing concern among cryptocurrency enthusiasts and investors alike.
Despite the initial excitement surrounding Shiba Inu, it appears that the reality of the situation is starting to set in for many investors.
With such a high percentage of token holders not expected to make any kind of money as of yet, it is clear that the hype train may have been running a little too fast.
This sharp downturn in the market has left many crypto capitalists wondering what happened and whether their investments will ever recover.
Shiba Inu Token Holders Suffer Losses, Data Shows Addresses Unprofitable
New data from IntoTheBlock indicates that the majority of Shiba Inu token holders are experiencing losses on their holdings.
As of now, four out of five SHIB investors are holding unprofitable addresses, equating to 991,440 addresses with 497 trillion tokens valued at around $4.4 billion. This leaves only $668.4 million worth of SHIB that is currently profitable to its holders.
The situation is further complicated by the fact that many of these unprofitable addresses purchased SHIB at the $0.000009 to $0.000014 price range.
According to data, there are 348,170 such addresses, holding an enormous volume of 281.12 trillion SHIB.
At present, the Shiba Inu token is ranked sixth among the largest cryptocurrencies in terms of the ratio of loss-making addresses to profitable ones.
Recent SHIB Prices Raise Concerns About Long-Term Holding
The current price of Shiba Inu token, listed at $0.00000892 per token on CoinGecko, is drawing attention due to its recent pricing history.
SHIB total market cap at $5.15 billion on the daily chart at TradingView.com
The fact that the token was priced at similar levels not long ago raises concerns about the motivations of current token holders, particularly in regard to their long-term holding strategies.
The token’s recent 24-hour rally of 0.4% is far from impressive, but it is the 4.1% slump observed over the past seven days that is particularly troubling.
This slump suggests that the token’s value is unstable and unpredictable, which could be a result of the high percentage of loss-making addresses.
Given the current market climate, many investors are looking for opportunities to hold on to their cryptocurrency assets in hopes of long-term gains.
However, the recent history of Shiba Inu token prices suggests that its owners are not taking a similar approach.
This raises concerns that the token is being held for short-term gains rather than long-term investment, which could lead to further instability in the token’s value.
-Featured image from PngTree, video from YouTube